Futures slip at start of data-packed week

(Reuters) – U.S. stock index futures started December lower after recording robust gains last month, with focus on a slate of economic data later this week, including a jobs report, to gauge the Federal Reserve’s interest rate path.

This week’s centerpiece would be the November nonfarm payrolls report due on Friday, a key metric in also gauging the state of the labor market.

Traders currently see a more than 61% chance of the Fed opting for a 25-basis-point rate cut when it meets later this month, compared to a near 83% chance seen a month prior, as per CME’s FedWatch Tool.

An October jobs opening reading is slated to be released on Tuesday, while November private payrolls data is due on Wednesday.

The and the blue-chip Dow clocked record closing highs on Friday, capping off a stellar November for U.S. equities.

Investors relished in U.S. stocks last month after Republican candidate Donald Trump recaptured the White House along with his party sweeping both houses of Congress.

Trump’s policies on tax cuts, tariffs and deregulation could spur greater corporate performance. However, concerns that his policies could bump up inflation have also led to markets dialing back hopes of the Fed ramping up its rate easing cycle.

The week is also packed with data that could indicate how the economy is faring, including multiple surveys of economic activity for the last month.

November manufacturing activity surveys from S&P Global and the Institute for Supply Management (ISM) are due later in the day.

A slate of Fed speakers will also make public appearances this week including Fed Chair Jerome Powell, with investors hunting for any clues on the central bank’s policy path.

Comments from Fed Governor Christopher Waller and New York Fed President John Williams would be on the radar later in the day.

On the day, most megacap and growth stocks were slightly lower, with Nvidia (NASDAQ:)’s 1.6% fall leading losses. Tesla (NASDAQ:), on the other hand, outperformed with a 1.7% advance.

At 5:06 a.m. ET, Dow E-minis were down 54 points, or 0.12%, S&P 500 E-minis were down 12.75 points, or 0.21%, and E-minis were down 48.5 points, or 0.23%.

Among other early premarket movers, Gap rose 3.5% after J.P. Morgan upgraded the apparel retailer’s rating to “overweight” from “neutral”.